Corrections ended in European markets after the end of the summer, due to restrictions on investor expectations from the news of inflation in the Eurozone, which broke a record of a decade (please read the analysis entitled «ECB – Inflation Brings Changes to Monetary Policy»). However, despite any corrective moves, the main European stock indices …
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ECB – Inflation Brings Changes to Monetary Policy
The ten-year record for euro area inflation – 3% in August from 2.2% in July and structural inflation (excluding energy and food) rose 1.6%, the highest since 2012 – is now key area of controversy and strong arguments for proponents of restrictive monetary policy. Their arguments are reinforced by the recently announced inflation in Germany …
The Ingredients for Economic Prosperity: Energy & Growth
One of the most important costs for the operation of a business and the entire market is the cost of energy, which together with other factors e.g., such as labor costs, etc., largely shape the final prices of the product and service produced respectively. The increased energy costs today, the global trend is to increase …
Why China Has a Difficulty Getting Rid of Coal
2020 was a milestone in increasing energy production in China. China has commissioned new lignite plants that produce a total of about 38.4GW of electricity. China is the country that builds factories to increase the use of lignite for electricity generation while at the same time as a country invests most of the capital in …
Teleworking and Cyber Security Gaps in Business
A large percentage of CEOs believe that their current cybersecurity budget should increase to 40% of their total annual business budget. Recent global research of the EY Global Information Security Survey 2021 (https://www.ey.com/en_gl/ cybersecurity/cybersecurity-how-do-you-rise-above-the-waves-of-a-perfect-storm by Kris Lovejoy) showed that the forced shift of companies to teleworking in order not to reduce or interrupt their productivity …
Evergrande Group: Will Destroy China?
Evergrande Real Estate Group or Evergrande Group, a real estate giant with 200,000 employees and 3.8m jobs indirectly dependent on its operations and with debts more than $300 billion, forced Fitch to downgrade the company to the CC investment grade it shows high probability default. Moody’s did the same the day before. The company is …
Why Demand for Investment in European Bonds Is Growing
The fact that the ECB, through its programmes of the type of quantum easing (QE) and Pandemic Emergency Purchases Program (PEPP) respectively, provides the market with money, making it the main buyer of European government bonds, forces investors to create an informal queue to buy the remaining and smaller volume of European bonds offerings left …
What Business Borrowing with ESG Criteria Means?
The pressure to put green development and Environmental, Social and Governance (ESG) criteria at the heart of corporate decision-making has led to the creation of two new types of loans, Green Loans and Sustainability Linked Loans. The basic principles of both types of loans were created by the EU Loan Market Association. More specifically: In …
China’s Labour shortage continues to rise
In addition to the rapidly aging percentage of the Chinese population, China is facing a growing labor shortage even for unskilled jobs. This twin problems will slowly and steadily, if continued, create a deficit in China’s social security and pension fund revenues and as the need for pensions and old-age services increases exponentially. The period …
Smaller in Absolute Size but, Bigger the US Budget Deficit
Due to the rapid recovery of the US economy, the Biden government predicts that this year the Federal Budget deficit will be $555 billion lower than the corresponding budget in May. In absolute numbers, the forecast is for a deficit of $3.12 trillion for the financial year ending September 30, 2021. The deficits are not …